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Tencent and financials led the market’s advance.
The market opened higher on Wednesday. Hang Seng index opened up 189 points, H share index up 74 points and technology index up 50 points. Alibaba reported 86% in 4th quarter prof...
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Tencent and financials led the market’s advance.
Analyst : Lun Sheung Nim (CEO, GEO Securities Limited)
The market opened higher on Wednesday. Hang Seng index opened up 189 points, H share index up 74 points and technology index up 50 points. Alibaba reported 86% in 4th quarter profit. Share price crash 4% for 60-point loss to lead the losers. On the other hand, Tencent reported strong results and rose 4.76% for 86-point gain to lead the blue chips. Meituan rose 3.4% for 38-point gain. HSBC rose 0.6% for 10-point gain. CCB rose 1.08% for 10-point gain. Shanghai composite index opened up 10 points. The market’s gain narrowed after opening. Hang Seng index rose more than 100 points but then recovered. Chinese Banks rose. CCB rose 5.2% for 52-point gain. ICBC rose 4.25% for 24-point gain. HSBC rose 1.4% for 25-point gain. The Chinese Government launched new initiative for local governments to buy unsold flats from developers. Mainland developers rose. Longfor rose 14.9%. China Overseas Land rose 5.9%. CR Land rose 5.4%. Shimao rose13%. Transocean rose 16%. Times China rose 10%. Fantasia rose 10%. The market rose further in midmorning as Hang Seng index rose more than 200 points. CCB rose 5.2% for 52-point gain. Tencent rose 4.2% for 76-point gain. ICBC rose 4.7% for 25-point gain. HSBC rose 1.3% for 25-point gain. Meituan rose 3.1% for 33-point gain. Hang Seng index closed the morning up 303 points, H share index up 123 points and technology index up 43 points. Turnover was $114.2 billion.

The market rose further in the afternoon. Hang Seng index gained more than 300 points. Alibaba lost 3% for 44-point loss. Techtronic lost 4.74% for 15-point loss. CCB rose 5.9% for 59-point gain. Tencent rose 4.2% for 76-point gain. Meituan rose 4.2% for 46-point gain. Ping An rose 6.5% for 27-point gain. HSBC rose 1.6% for 29-point gain. BOC rose 4.6% for 22-point gain. HK Exchanges rose 2.95% for 16-point gain. The US Government will impose 100% import tariff on Chinese made EV’s. Auto shares fell. BYD lost 1.6%. Li Auto lost 2.78%. Nio lost 1.8%. Lithium battery makers also suffered. Ganfeng Lithium lost 5%. Tianqi Lithium lost 2.2%. Local properties rose. Henderson Land rose 6.4%. New World rose 3.2%. SHK Property rose 2.5%. The US Government plan to impose 10% import duty on Chinese made EV’s. Auto shares fell. BYD lost 1.6%. Li Auto lost 2.3%. Nio lost 1.8%. Lithium shares were also affected by US import tariff. Ganfeng Lithium lost 5%. Tianqi Lithium lost 2.2%. Shanghai composite index closed up 2 points. Hang Seng index closed up 302 points, H share index up 129 points and technology index up 30 points. Turnover was $204.9 billion.

Overnight, overseas markets fell. DAX lost 130 points. CAC lost 51 points and FTSE lost 7 points. US markets set record highs first but closed lower. Dow Jones rose to 40000 in early trading but closed down 38 points. S & P lost 11 points and Nasdaq lost 44 points. Hong Kong ADR’s rose 158 points. Night future rose 232 points. We expect the market to rise today.  
 
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